Your credit history can make or break your small business

credit history, credit reportLuis O De la Hoz, Vice President Lending Team at The Intersect Fund, addressed important issues related to access to non-traditional funding for small businesses at the Hispanic Chamber of e-Commerce Google Hangout.

De la Hoz also reminded small business owners that they can save up to $250K in their lifetime by having a good credit score. Where do these saving come from?

… saving up to $150 each month on your car payment.

…saving up to $80 each month in your car insurance.

…avoiding mandatory security deposits when opening an account for a public utility service.

…. up to $2000 in security deposit for the purchase of your cellular phone.

According to De la Hoz, microloan expert and small business advocate, there are three important elements to consider when building or maintaining your credit history:

Open at least three accounts (credit cards, car loan, mortgage, personal or small business loans, or similar) reporting to the credit bureaus that you are paying on time.

  1. Keep your revolving credit account balances below 30 percent (maximum of 50 percent)
  2. Always pay on time.

Not having a good credit record can impact your job search in some industries, complicate or impede your access to a college education, and even qualify for business loans and other small business services that are offered in the marketplace. Vendors will also look at your credit history to see if you are a reliable payer, and other organizations will rate your business credit according to your personal credit until your business is established.

Another issue that is common among Hispanic business owners is the lack of knowledge about their credit history. De la Hoz suggests that entrepreneurs and startups follow carefully their history through the credit bureaus such as Experian, TransUnion, and Equifax. You can also receive one free report a year to check possible mistakes or errors.

A small business owner himself, De la Hoz’ journey as an entrepreneur made him passionate about supporting small business owners. “Latino business owners want an advisor who is specifically trained or certified in helping small businesses, speaks their language of preference, and is involved in the community,” De la Hoz said. Approximately 69 percent of Hispanic business owners looks for an advisor who is specifically certified to work with small businesses opposed to just 50 percent of general business owners looking for advice.

Six in 10 Hispanic owners say they want an advisor who can speak in their preferred language. Being involved in the community is more than twice as important (32 percent) to Hispanic owners as it is to the general market (14 percent).


  • Award-winning journalist, author, multicultural expert, public speaker, small business advocate and the Editor-in-Chief of Susana is an Argentinean immigrant who started her own small business over 20 years ago. Now, through her new digital platform and social media channels, she advocates for the economic empowerment of Latinas in the United States.

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